ARTIFICIAL SILK.

New Zealand Herald, Volume LXVIII, Issue 20846, 13 April 1931, Page 5

ARTIFICIAL SILK.

AFTERMATH OF BOOM. MANY COMPANIES VANISHED. FUTURE OF THE INDUSTRY. A comprehensive view of the vicissitudes the artificial silk industry was given by Mr. Samuel Courtauld at the annual meeting in London of Courtauld's, Limited. After explaining the causes of the present unprofitable state of the industry, he said thero were grounds for a reasonable optimism as to the future. Mr. Courtauld said that during the last two years prices of all textile yarns and fibres had fallen heavily—raw cotton and wool by 50 per cent., cotton and worsted yarns by 33 per cent., and real silk about 50 per cent. Rayon had not fallen by more than 35 per cent., so that the industry was no more sick than the textile industry in general. Orgy ol Speculation.

"But although we have shared in tho general ill-fortune our own industry has suffered from a special complaint which is not common to other textiles, and can be paralleled in t*ecent years by any important industry," Mr Courtauld continued. "I refer,- of course, to the senseless increaso in production resulting from the orgy of company-promoting and speculation which began in this country about, five years ago and was only slightly less marked in other countries. Once the epidemic of speculation had got a firm hold, nothing could avert the inevitable consequence. What wo could not be sure about was the length of time which would elapse before complete market demoralisation set in, nor, of course, could we foresee that the highest wave of over-pro-duction would meet tho deepest trough of economic depression known for generations."

By the end of 1929 25 companies, after allowing for amalgamations, had been registered for . the production of rayon yarn in Britain—l 9of thenj since the middle of 1925. There were no market quotations for the shares of seven of these, with a subscribed capital of about £3,000,000; at any rate, four of these seven are closed down.

Toward 17 others the public subscribed in cash, exclusive of debentures, £20,733,685. The total market price of theso sam.o shares at December 31 was £3,671,711, showing a loss of £17,061,974, or 82 per cent, of the money put into them. Altogether 13 of the original 25 are closed down.

In addition to tho 13 companies which had apparently dropped out in England, the company had record of five or six (out of 15) having ceased production in the United States of America, eight in France (out of 22), five in Germany (out of 17), and a few others elsewhere; and this process would undoubtedly go further. Huge Productive Capacity. Estimates were given uf the production of all classes of rayon for the whole world and for England and the United States during recent years as follows:

1026. 1927. 1923. 1929. 1930. Million lbs. World . . . 225 280 350 430 410 England . . 20 -10 54 57 .49 United States 03 75 93 125 115

From 1926 to 1929 the actual world production of rayon doubled, and practically tho whole of this weight went into consumption, for before 1929 there* was no abnormal increase of stocks. But, while the actual production was growing at this rate, the power of 'production was growing still faster, for all the time fresh works were being erected and the proportion of industrial plant more or less complete, but not yet in operation, was growing bigger. Then in 1930 occurred a sudden reversal, and for the first time a reduction, amounting to about 5 per cent., in the actual world-weight of rayon produced, and a stil! greater -reduction in the weight consumed, for it is estimated that 30,000,0001b. to 40,000,0001b. went into stock during the year and that consumption fell by about 12J, per cent. Moreover, plants all over the world were working very far below their full capacity. At a conservative estimato the whole industry could have produced 600.000.0001b.' in 1930, or half as much again as {he actual output

The marked exception to the general tendency to reduce production was fur nished by Japan Japanese output has increased rapidly and steadily since 1926, and that country is now obtaining an important share of the world's trade, especially in Far Eastern markets. Japan's production during 1930 was about 35.000.00011).

Fight Must Continue

Referring to proposals for control of production and stabilising the industry, Mr. Courtauld indicated that there were no prospects of progress in that direction. In his opinion, the fight must go on for some time yet. The gap between consumption and productive power is too wide at present to be bridged by arrangement, and it will not bo closed until demand resumes its normal expansion and sufficient tune elapses for it to catch up with production. "" No immediate improvement could be expected, and 1931 would be a lean year for tho industry. "We look, nevertheless, with considerably confidence at tho more distant future," said Mr. Courtauld. "Unless the whole textile industry of Europe and America falls into ruins, (he future of rayon is assured. It is my unshakeable belief that its place in tho industry is secure, and that its use must inevitably grow." \Thc quality of tho article is continually improving; manufacturers of fabrics have made great strides in tho handling of it, and rapid advances are being made in devising and selecting the most suitable fabric-structures into which to put it.

OKARITO DREDGING CO. RESULT OF CLEAN-UP. The engineer of the Okarito Five-mile Beach Gold Dredging Company reports a' return of 61oz. for a partial clean-up of the paddock now being worked. No bottom has as yet been cleaned up. The sluicing will bo continued to complete the paddock, after which the elevator piping will bo required for the dredge, which is well on the way to completion. CHICAGO WHEAT MARKET. * (Received April 12, 5.5 p.m.) CHICAGO, April It. Wheal. —May, 84 cents per bushel; July, 62 7-8 cents; September, 64 3-8 cents; December, not quoted. DAIRY PRODUCE PRICES. A. H. Turnbull and Company have received the following from W. Weddel and Company, Limited, dated London, April 10: —Butter: Danish, 124s to 126s;'New Zealand, unsalted, 114s to 118s; salted, 109s to 112s; market slow. Cheese; New Zealand, white, 50s to 51s; coloured, 53s to 555; Canadian, white, 72s to 745; coloured, 74s to 78s; market steady.